Belgian budget deficit highest of the Eurozone

The European commission is forecasting a big jump in Belgium’s budget deficit if no action is taken. This year’s deficit is set to rise to 1.7% of national output, while by 2021 the figure could rise to 2.6%. Together with Italy Belgium is on course for the highest deficit in the Eurozone.

Colin Clapson

Thu 07 Nov 2019 15:37

The forecast for this year is bad news for the Belgian government. As recently as this spring the commission thought the deficit could be limited to 1.3% of GDP.

If government policy fails to change and change is unlikely as long as the country is governed by a caretaker administration the deficit is forecast to rise to 2.3% next year and 2.6% in 2021.

The commission is forecasting economic growth of 1.1% this year, a touch lower than this spring. With this figure Belgium exactly hits the growth average for the Eurozone.